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Bharat Coking Coal Lists at 96% Premium, Raises ₹1,017 Cr in Blockbuster IPO Debut

Bharat Coking Coal Limited shares debut strongly on BSE and NSE with nearly 97% premium over IPO price. The PSU’s ₹1,017-crore public issue saw massive oversubscription, signalling strong investor confidence and long-term potential.
Bharat Coking Coal Lists at 96% Premium, Raises ₹1,017 Cr in Blockbuster IPO Debut

NEW DELHI: In a major boost towards the financial progress, the shares of Coal India’s subsidiary, Bharat Coking Coal opens with a bumper debut on Dalal Street on Monday with completion of its Initial Public Offering (IPO), raising around Rs 1,017.11 crore from the markets. The BCCL shares has kickstarted its first-ever trading session on the BSE by listing at Rs 45.21, a premium of Rs 22.21 or 96.57% over the IPO issue price of Rs 23, during the pre-opening session.

For National Stock Exchange (NSE), the stock listed at Rs 45 per share with a premium of Rs 22 or 96.65% as compared to the issue price. The IPO of BCCL has also outperformed its grey market estimates. According to the market estimates, the Dalal Street debut, the company’s unlisted shares were trading around Rs 36.5 per share in the grey market which indicates a premium of Rs 13.5 or 58.7 %, over the issue price of Rs 23.

According to the several stock analysts, the BCCL stock has good enough long-term potential with a key risk view of limited retail float of around 10% which could lead to a perception of significant surge in near term. The stock in a tactical move is primarily fully priced at current levels. Further Long-term investors may continue to hold the stock with a stop-loss of Rs 35 with a perception of medium to long term perspectives.

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The Public Offering with an offer for sale (OFS) of 465.7 million equity shares has witnessed an overwhelming response from investors with the issue oversubscribed by 146.87 times. In case of Qualified Institutional Buyers (QIBs), it subscribed to 310.81 times their allocated share of of the offering. The non-institutional investors (NII) and retail segments has seen a substantial interest with oversubscription rates of 258.16 times and 49.33 times, as per NSE data.

Kfin Technologies served as the registrar for the issue, while IDBI Capital Markets and Securities, along with ICICI Securities, acted as the book-running lead managers.

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